2024 Lok Sabha Election Results: A Jolting Surprise and Economic Implications

The 2024 Lok Sabha election results have left the ruling Bharatiya Janata Party (BJP) and its alliance NDA in a state of shock and disbelief. What was expected to be a clear and easy majority for the incumbent party turned into a nail-biting race with the opposing INDIA bloc gaining ground.

The exit polls had predicted a landslide victory for the BJP, following India’s remarkable GDP growth rate of 8.2% for the fiscal year 2023-24. However, the actual results painted a different picture, with the ruling party’s tally dropping from 303 seats in 2019 to less than 245 this year.

The unexpected turn of events sent shockwaves through the stock market, with Sensex witnessing the steepest drop in over four years, recording a loss of 4,389 points. Nifty also dipped by almost 6%, reflecting the uncertainty and anxiety surrounding the new political landscape.

Despite the market jitters, India’s economic growth story remains strong, with projections of becoming the world’s 3rd largest economy by 2027 and reaching a GDP value of $7 trillion by 2030. While the sharp fall in benchmark indices may raise concerns about the stability of the new government and its impact on the economy, experts believe that India’s growth trajectory is unlikely to be derailed.

Veteran investors like Raamdeo Agrawal remain cautiously optimistic, emphasizing the long-term potential of India’s economy and the resilience of the NDA government. As the dust settles on the election results, the focus now shifts to how the new government will navigate the challenges ahead and steer India towards its ambitious economic goals.